Why the Raiz Invest (ASX:RZI) share price has slumped 5%

The Raiz Invest Ltd (ASX: RZI) share price has been hit hard in early trade as it seeks to raise more capital at $1.50 per share.
The post Why the Raiz Invest (ASX:RZI) share price has slumped 5% appeared first on The Motley Fool Australia. –

white arrow dropping down

The RAIZ Invest Ltd (ASX: RZI) share price has slumped 5% this morning after a capital raising update from the Aussie fintech.

Why is the Raiz Invest share price under pressure?

Raiz this morning provided an update on its institutional share placement. The Aussie fintech received firm commitments to raise $10.2 million via an oversubscribed placement backed by new and existing shareholders.

The Raiz Invest share price has slumped lower on the news after raising the cash at $1.50 per share. That represented a 9.4% discount to the final closing price of $1.655 on 27 April 2021.

Following the settlement of the placement, Raiz will offer eligible shareholders the opportunity to participate in a Share Purchase Plan (SPP). Those funds will also be raised at $1.50 per share.

Raiz intends to use the funds to accelerate customer growth, develop new products and services, expand into new geographies and integrate the acquisition of Superestate. The Aussie fintech yesterday announced that acquisition for $9.5 million in an all-scrip transaction.

Superestate is a “niche, integrated superannuation and Australian residential property investment platform”. Raiz Invest Managing Director/Group CEO George Lucas said the acquisition marks an “important milestone for the group”.

“The acquisition provides tangible benefits to the customers of both financial services groups”, he added. Integrating Superestate allows Raiz to add residential property investment to its platform options.

The Raiz Invest share price is slumping lower this morning following the capital raising update. It comes shortly after the group’s quarterly result highlighted by adding nearly 26,000 more active customers.

Today’s placement will result in the placement of 6,800,000 new, fully paid ordinary shares at $1.50 per share. The new shares will rank equally alongside existing Raiz shares with a further 5,300,000 shares raised to acquire Superestate.

Foolish takeaway

The Raiz Invest share price is under pressure early on Friday morning. Investors have pushed the company’s shares lower after the company raised $10.2 million at $1.50 per share.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Raiz Invest (ASX:RZI) share price has slumped 5% appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!